SERAP Urges President Tinubu to Suspend ATM Fee Increase Pending Court Decision

SERAP has requested President Tinubu to halt the CBN’s increased ATM fees until a court delivers its verdict. The organization’s concerns emphasize that the fee hike undermines economic rights and could hinder financial inclusion. Furthermore, the lawsuit filed by SERAP argues against the new fees, which are set to be implemented from March 2025, in light of Nigeria’s current economic struggles.

The Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Tinubu to instruct the Central Bank of Nigeria (CBN) to suspend the recent increase in Automated Teller Machine (ATM) withdrawal fees until a court ruling is delivered on the matter. SERAP emphasized that this request aligns with the Nigerian Constitution of 1999, as amended, and is consistent with the President’s commitment to uphold the rule of law.

The CBN’s approval to increase ATM charges has raised significant concerns regarding its implications for financial inclusion and banking access in Nigeria. Under the new policy, customers face higher fees when making cash withdrawals from ATMs not owned by their banks, prompting backlash from various consumer advocacy groups and civil society organizations.

SERAP has already initiated a legal challenge against this fee hike, asserting that it infringes upon the economic rights of Nigerians, who are already facing economic difficulties. In calling for the suspension of these fees, SERAP reinforces the President’s responsibility to protect the interests of citizens and to reject unfair financial policies.

The organization has pointed out that the fee increase coincides with a difficult economic climate in Nigeria, characterized by rising inflation and high living costs. Many citizens have expressed their dissatisfaction on social media, perceiving the fee increase as unjustified and a further barrier to cash access.

Financial analysts have also criticized the CBN’s decision, pointing out that it conflicts with ongoing initiatives to encourage cashless transactions and improve banking accessibility. They caution that raising transaction costs may lead more individuals to rely on informal financial systems, which could undermine the effectiveness of the country’s monetary policies.

Last week, SERAP filed a lawsuit in Lagos’ Federal High Court seeking to prevent the CBN from executing the ATM fee increase. The lawsuit is referenced as suit number FHC/L/CS/344/2025. The legal team representing SERAP includes Kolawole Oluwadare and Andrew Nwankwo.

On February 11, 2025, the CBN announced a revision of ATM transaction fees, set to take effect from March 1, 2025. The apex bank indicated that these changes are intended to accommodate rising operational costs and improve ATM service efficiency, with the last fee revision occurring in 2019 when fees were reduced.

In summary, SERAP’s call to President Tinubu to halt the ATM fee hike reflects growing concerns over its impact on financial inclusion amid Nigeria’s economic challenges. The legal action against the fee increase underscores SERAP’s commitment to protecting citizens’ rights and highlights the need for a balanced approach towards financial policies in the country. The situation demands urgent attention and responsiveness from the government to uphold the principles of social justice and economic fairness.

Original Source: nairametrics.com